FACT, Coromandel International, RCF, Tata Chemicals: Fertiliser shares gain for second straight session, here is why

Shares of fertiliser manufacturers rose for a second straight session on Thursday, April 9, as geopolitical tensions eased after United States and Iran agreed to a two-week ceasefire leading to reopening of the Strait of Hormuz, a key route through which raw materials for making fertilisers are supplied, analysts noted.

Shares of Fertilisers and Chemicals Travancore (FACT), Coromandel International, Chambal Fertilises, Rashtriya Chemicals and Fertilisers, GNFC, State Fertilizers & Chemicals (GSFC), National Fertilisers, Basant Agro Tec and Madras Fertilisers advanced between 1.5% and 6%.

FACT was top gainer among the fertiliser shares, the stock advanced as much as 6% to ₹867, Tata Chemicals gained 5% to ₹680, RCF rose 3.5% to ₹129, Coromandel International surged as much as 2.11% to ₹2,161 and National Fertilisers gained as much as 2.5% to ₹76.

Fertilizer stocks are rallying after a two-week ceasefire between the US and Iran eased concerns over a potential global supply disruption. The truce has reduced fears of shipping blockages through the Strait of Hormuz, a key route that handles nearly 30% of global urea trade, analysts noted.

The de-escalation has brought relief to supply chains that were under pressure due to the conflict, which had threatened exports from major Middle Eastern producers such as Iran, Saudi Arabia and Qatar.

India is heavily reliant on West Asia for fertilizers. In 2024-25, India sourced approximately 75% of its urea imports from West Asian countries, primarily Oman, Qatar, Saudi Arabia and the UAE. Recent data indicates West Asia provides a massive share of India's urea needs, with Oman alone accounting for 45% and other Gulf nations around 26%. For Diammonium Phosphate (DAP), Saudi Arabia is a top supplier, according to a report by Indian Express.

The ceasefire has also helped ease upward pressure on fertiliser prices, which had spiked earlier amid fears of a prolonged disruption in global supplies.

Meanwhile, the government on Wednesday raised gas allocation for fertilizer plants to 95% of their requirements and permitted supply of commercial liquefied petroleum gas (LPG) to additional sectors, Hindustan Times reported.

As of 10:20 am, fertiliser shares were outperforming the benchmark NIFTY50 index which was down 0.67%.